The Cobb-Douglas function is today one of the most widely-adopted assumptions in economic modeling, yet both its … economic rents. Taken at face value, these results not only pose a question on any macroeconomic model assuming a Cobb-Douglas … function but also point towards an alternative interpretation of phenomena such as the way monetary policy impacts productivity …

The Cobb-Douglas function is today one of the most widely-adopted assumptions in economic modeling, yet both its … economic rents. Taken at face value, these results not only pose a question on any macroeconomic model assuming a Cobb-Douglas … function but also point towards an alternative interpretation of phenomena such as the way monetary policy impacts productivity …

. Taken at face value, these results pose a question on any macroeconomic model assuming a Cobb-Douglas function … returns constitute economic rents, than as a variable input whose price equals marginal cost, as in the basic Cobb-Douglas … function. The rationale is that investments require a lead time to put to production; thus, in an uncertain world, the response …